Informal Workers Push for Government-Matched Pension Scheme, Expanded Social Protection
By Kikelomo D.
Informal workers in Nigeria have called for a government-backed 50:50 pension co-contribution scheme to improve retirement security and welfare protection.
The Federation of Informal Workers Organisations of Nigeria (FIWON) has urged the Federal Government to introduce a 50:50 pension co-contribution scheme for informal workers as part of broader efforts to strengthen social protection for millions of Nigerians outside the formal sector.
In a statement issued by FIWON General Secretary, Gbenga Komolafe, and President, Bolaji Saadu, the organisation said the majority of Nigeria’s workforce remains excluded from pension coverage, healthcare, workplace insurance, and other welfare protections despite contributing significantly to the economy.
According to the group, more than 93 per cent of Nigeria’s workforce operates within the informal economy, including traders, artisans, garment makers, transport workers, construction workers, mechanics, farmers, domestic workers, food processors, vendors, waste pickers and home-based workers.
FIWON criticised the existing micro-pension scheme managed by the National Pension Commission (PenCom), arguing that the initiative has failed to deliver meaningful retirement security for low-income earners due to inflationary pressures and irregular earnings.
The organisation called for a government-backed matching contribution arrangement in which public authorities would contribute an amount equal to the savings made by informal workers toward their pensions.
“We reiterate our demand for a matching contribution system where government complements the pension savings of informal workers, a 50:50 co-contribution model similar to what obtains in the formal sector,” the statement said.
“This would make pension contributions more attractive and sustainable for low-income earners.”
FIWON argued that many informal workers survive on unstable and modest incomes, making it difficult for them to maintain long-term pension savings without institutional support.
Beyond pensions, the organisation also renewed calls for wider social protection measures, including subsidised healthcare and free health insurance coverage for vulnerable groups such as pregnant women, children under five years, older persons and people living with disabilities.
According to the group, many workers in the informal economy remain effectively excluded from healthcare services because they cannot afford insurance premiums, while implementation of the Basic Health Care Provision Fund remains weak in several states.
The organisation further demanded that the Employees’ Compensation Act be extended to cover informal workers in order to guarantee compensation for workplace injuries, disabilities and deaths.
Labour advocates say the issue of social protection for informal workers is becoming increasingly urgent as inflation, rising living costs and economic instability continue to place pressure on low-income households across the country.
Analysts note that the informal sector accounts for a substantial share of employment and economic activity in Nigeria, making calls for broader pension inclusion and healthcare coverage a growing policy concern for government and labour stakeholders alike.
